By Stephen Downer
CORRESPONDENT
Published: August 5, 2014 12:59 pm ET
Updated: August 5, 2014 2:34 pm ET
MEXICO CITY — Mexican PVC and specialty chemicals maker Mexichem SAB de CV has agreed to buy German PVC paste producer Vestolit GmbH from investment company Strategic Value Partners LLC (SVP Global) for 219 million euros ($293 million), SVP said Aug. 5.
Based in Marl, Germany, Vestolit makes the PVC paste for flooring, wallpaper and underbody protection for cars, according to a news release from SVP.
Greenwich, Conn.-based SVP started looking for a buyer for Vestolit in mid July.
“This transaction represents an opportunity to expand our presence in Europe, enter new market segments and acquire new technology and best practices,” Mexichem said in a statement, posted on the Mexican Stock Exchange, noting that Vestolit has sales representatives in 35-plus countries.
Vestolit claims to be the only producer of high impact suspension PVC (HIS-PVC) for weather-resistant and energy-efficient windows and also produces alkyl-chlorides, “a value-added intermediary, used for a variety of chemical and industrial applications.”
Its total installed capacity is 415,000 tons per year and in 2013 it had a sales of 477 million euros ($638.4 million), SVP said.
“Under SVP Global's ownership, the profitability of Vestolit has grown and the business has made a number of advances, such as completing its transition to more environmentally friendly membrane electrolysis production techniques,” SVP added.
Mexichem, of Tlalnepantla, an industrial municipality close to Mexico City, is Latin America’s largest manufacturer of PVC pipe, vinyl resins and compounds. Neither it nor SVP mentioned when they expected the deal to be completed.
New York investment banking firm Jefferies LLC advised SVP. JP Morgan Chase & Co was Mexichem’s adviser. | 
